Unfilled job openings among small businesses continued to decline in August, according to the latest report from the National Federation of Independent Business (NFIB). The survey found that 32% of small business owners reported positions they could not fill, a decrease of one percentage point from July. This marks the lowest level for unfilled job openings since July 2020.
Openings for skilled workers dropped by one point to 28%, while openings for unskilled labor increased by one point to 13%. “While the economy appears to be doing well, small businesses are scaling back on job openings,” said Chief Economist Bill Dunkelberg. “Small business owners with job openings are still looking for qualified applicants, many citing labor quality as their single most important problem.”
NFIB State Director Jason Espinoza noted ongoing challenges in hiring: “Finding applicants with the right skills and experience remains a challenge for those small business owners looking to hire. For some of our members, they’re shifting their focus from hiring and onto retaining their current workforce.”
The report showed that 21% of respondents identified labor quality as their top concern, unchanged from July. Labor costs as the primary issue fell by one point to 8%.
In total, 53% of owners said they were hiring or trying to hire during August, down four points from July. Of those attempting to hire, 43%—representing 81% of those hiring—reported few or no qualified applicants, which is five points lower than the previous month. Twenty-six percent saw few qualified candidates and 17% reported none.
Job openings remained highest in construction, manufacturing, and transportation sectors; wholesale and finance industries had the lowest rates.
Looking ahead, a seasonally adjusted net 15% of owners plan to create new jobs over the next three months—a slight increase marking three consecutive monthly gains. Compensation also rose: a net 29% reported raising pay in August (up two points), while a net 20% expect further increases in compensation within three months (up three points).
For more details on these findings and additional data from NFIB’s survey, visit https://www.nfib.com/surveys/small-business-economic-trends/.
